What’s Life Insurance
Life Insurance simple put is the financial protection for your family against your death. Insurance generally is the pooling of risk. Life insurance other name can as well be called Assurance You can make money with Life insurance.
There are different forms of life insurance like, whole life, universal and variable life insurance. All these are savings one can make towards his life. And still benefit from it.
And you can even get loan from the company you are doing life insurance with. Again you can withdraw your funds. Also you can cancel it and get your whole money back.
Often times people wonder. Do I have to die before I make money with insurance companies? The answer is no.
Life insurance Savings
Unlike the normal savings account which pays little interest rate. That’s about 2-3 percent. Insurance companies can pay as high as 8-9 percent. Yes. They make a lot investments with good returns.
And the beautiful thing is that the savings is compounded. This is what we call compound interest.
Assuming you start a life insurance savings with as little as #2000 every month. For a period of one, two to three years. Both the interest and the Principal accrued monthly is reinvested.
Consequently, you can save for one year and collect your principal with the interest. Also you can save for two, three, four and even five years.
The more years you save, the more your money. That’s how it works.
I know this is about life insurance where if the person dies, an indemnity is paid to the family. But am are not looking at it that way.
Finally, someone will eventually die one day. But I am looking at it this way. A situation where you don’t die.
And save money for a certain period with an insurance company. And just to make money. Yes only for the money and the interest